Expressions of interest are closing on the sale of Nericon Citrus, a citrus orchard business located about 10 km north of Griffith in Australia. The operation is expected to attract offers of more than US$60 million.
The property covers 557 hectares and is owned through the Australian investment fund Granite Capital. It is offered as a fully established operation that includes 2,717 megaliters of high-security water and 5,775 megaliters of tradeable delivery entitlements that allow the water to be distributed through the irrigation network.
The aggregation includes two farms located within four kilometers of each other. Infrastructure on the property includes five machinery sheds, two workshops, a chemical storage shed, a fertilizer shed, an office, and a residence.
About 468 hectares are planted with citrus varieties supplied to domestic and export markets. Plantings include navel oranges across 314 hectares, red flesh navel oranges on 84 hectares, Afourer mandarins on 51 hectares, and seedless lemons on 18 hectares.
The combination of varieties allows harvesting and marketing across an extended period during the season.
The sale is being handled by land real estate agency LAWD with agribusiness consultant Danny Thomas.
"Nericon Citrus is one of Australia's largest and most strategically positioned citrus orchards, with a highly experienced management team, which has developed and managed the asset for the past seven years," Mr. Thomas said.
"Collectively, they bring 50-plus years of operational farm management experience and strong networks in the supply chain, providing investors with the option of a seamless turn-key investment opportunity.
"In addition, the investment in extensive capital expenditure projects to reposition the orchard into a premium fresh-citrus operation is delivering high-yield varietals and an extended harvest window to maximise operational efficiencies, and unlock broad, higher value market access."
According to LAWD, orchard output is expected to increase as the trees reach maturity. Production is forecast to rise from about 6,150 tons of fruit in 2025 to around 23,600 tons by 2030. By the 2030 financial year, earnings before interest, tax, depreciation, and amortisation are projected to reach about US$13 million.
The orchard currently has about 89 hectares covered with protective netting to protect trees from the weather and pests. The property also operates 29 automated frost fans designed to reduce cold-related crop damage.
Plans include adding more protective netting in three stages, along with upgrades to machinery and equipment aimed at improving operational efficiency.
Expressions of interest for the Nericon Citrus aggregation close at noon on Thursday, 5 March.
Source: Region
